Case study: How Grupo Galicia takes action on its PRB targets: financial inclusion and climate stability

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Grupo Galicia maintains an open and transparent dialogue with its stakeholders through various communication channels designed to enhance relationships and understand their needs and expectations. These stakeholders include shareholders, investors, regulatory authorities, employees, the community, suppliers, and the environment. The material topics were assessed by examining the Group’s impact analysis on individuals, the economy, and the planet. The identified impacts were then linked to strategic indicators and business objectives. To identify the critical factors that management can leverage to maximize positive outcomes and reduce negative effects on sustainable development, Grupo Galicia conducted surveys with all stakeholders to determine which impacts they viewed as most significant.

What actions were taken by Grupo Galicia on its PRB targets, financial inclusion and climate stability?

In its 2023 Integrated Report Grupo Galicia reports that it took the following actions on its PRB targets, financial inclusion and climate stability:

• SMART Target 1: Financial inclusion
• In 2023, Galicia enhanced the accessibility, utilization, and quality of its financial services and products, emphasizing activation and usage through financial tools, support across various contact channels, and financial education initiatives.
• In its capacity as a financial agent, Galicia also fosters inclusion by contributing to projects and organizations that generate positive social and environmental impacts. Since 2020, Galicia has backed the “Emergency Fund for Social Economy” as part of the COVIDA Fund, executed through the social organization Sumatoria. This initiative encompasses 18 projects aimed at facilitating access to financing services for entrepreneurs, projects, institutions, and companies that have a positive impact. Furthermore, Galicia invested Ps. 20,000,000 into the Trust Fund for the Development of the Social Economy (Fondo Fiduciario para el Desarrollo de la Economía Social, FONDES), an innovative public-private initiative designed to promote the social economy by providing productive loans to workers.

• SMART Target 2: Climate stability
• Dedicated to its role as a financial institution in the fight against climate change, Grupo Galicia is making strides in its efforts to reduce the carbon footprint of its investments by:
  • Conducting a second assessment of the carbon footprint of emissions financed by Galicia using the Partnership for Carbon Accounting Financials (PCAF) tool and disclosing the results in the Integrated Report.
  • Collaborating with an external consultant to develop a Strategic Sustainable Finance plan aimed at enhancing the decarbonization of its portfolio and operations. Key outcomes expected from this initiative include establishing a sustainable taxonomy, analysing climate scenarios, setting goals for reducing financed emissions, and implementing the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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References:

This case study is based on published information by Grupo Galicia, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://gfgsa-stag.s3.amazonaws.com/app/uploads/2024/06/26182821/Annual-Report-Integrated-Report-Grupo-Financiero-Galicia-2023.pdf

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